Asian Shares Mixed; Gold Miners In Limelight

ColinNg

SINGAPORE (MarketWatch) -- Asian markets were mixed Monday with sentiment bolstered by U.S. stocks' gains Friday. In Australia, gold stocks were in the limelight as the price of the yellow metal surged.

Australia's S&P/ASX 200 was up 0.7% and South Korea's Kospi Composite was 0.4% higher, despite Friday's disappointing U.S. nonfarm payrolls result, while New Zealand's NZX-50 was 0.3% lower. Japanese markets were closed for Coming Of Age Day. Dow Jones Industrial Average futures were 33 points higher in screen trade.

"The worse-than-expected U.S. job data might have given some investors comfort that the timing for (fiscal and monetary) tightening would be delayed, and this will likely help (sustain) the equity market's recent strength," said You Seung-min at Samsung Securities.

Korean equities were supported by the uptrend in U.S. stocks and hopes for solid results as earnings season kicked off this week, said Choi Jai-sic at Daishin Securities. He added, the "fundamental momentum continues to offset concerns about an (immediate) exit from stimulus programs."

Brokerages were leading the broad market's gain, with Samsung Securities up 1.3%, while refiners were higher on rise in oil prices, with SK Energy up 2.5%.

Daewoo Shipbuilding was up 2.2% at after winning an order worth about $350 million to build four ships for Greece's Angelicoussis Shipping Group. STX Offshore was up 0.7% on news it won a $130 million Turkish bulk ship order.

Gold miners were the highlight of the Australian market, lifted by spot gold's surge, with Lihir Gold up 3.3% and Newcrest Mining up 2.9%.

The yellow metal was at $1,153.55 per troy ounce, up $16.85 from the New York close. "There's new money coming in, as investments are being reallocated. Gold's move is also being exacerbated by thin volume," said Investec head of trading Darren Heathcote.

Investors were awaiting the upcoming earnings season--both in the U.S. and Australia--for clues as to whether or not the recovery was on a sustainable path.

Energy stocks are also up after crude futures rose, with Santos up 0.8% and Woodside Petroleum 0.7% higher. Santos was also in the news for extending an option to sell a further 1 million tons a year of liquefied natural gas from its project in Queensland state to Malaysia's Petroliam Nasional.

The New Zealand market was dragged lower by Auckland Airport's 3.4% drop, after it announced an agreement to buy a 24.6% stake in North Queensland Airports.

The stock's fall was "probably more uncertainty than anything else," said First NZ Capital analyst Rob Bode. He added the deal "makes sense, it is a logical extension of their core business without going beyond a level of investment people see as being dangerous" as the buy only represents 5% of Auckland Airport's total assets.

Among other stocks, Fletcher Building was 0.2% higher on data showing a 2.8% on-year rise in New Zealand house prices in December while bellwether Telecom was off 0.8%.

Many investors were keeping a close eye on how Chinese stock markets perform later in the day. China's Cabinet approved in principle the launch of stock index futures and a trial program for short selling and margin trading of stocks late Friday, marking a fresh milestone in the development of the country's capital markets.

In foreign exchange markets, the U.S. dollar was under a little bit of pressure after Friday's softer-than-expected U.S. jobs data, though major pairs traded in very tight ranges with Tokyo markets closed.

The euro was at $1.4466 from $1.4414 in New York trade late Friday, and at Y133.55 from Y133.48. The dollar was at Y92.33 from Y92.61.

The payrolls result and balance of risks "suggest we could see a bit more weakness" for the greenback, said Bank of NZ strategist Mike Jones; "The overall tone of recent economic data is still indicative of a broad recovery in 2010 global growth, which should support investors' risk appetite."

February Nymex crude oil futures were up 65 cents at $83.40 per barrel.

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